How do I add an Independent Contractor?

Hiring an independent contractor? Not only can you easily add them to FingerCheck, but you can also take care of their tax compliance while onboarding. Simply indicate their tax type as 1099M or 1099R and they will be requested to fill out a digital W-9 form that will be stored within their employee documents.

Adding your independent contractor follows almost the same process as adding a regular employee. Here's a guide to follow along: 

  • Log onto your FingerCheck account and go to the “Employees” tab on the left side menu. Click the green "New Employee" button.

  • Now, begin the process of adding your employee. You'll be required to provide basic information, such as the employee's name, ID number, clock number, etc. Be sure that by "Tax Type," choose 1099M or 1099R. At the bottom of the page, check the "Enable Employee Self-Onboarding" box and click "Save and Continue." The system will send an email invitation to the address you entered for the "Work Email" field.

  • The independent contractor will be sent an email that provides them with a link to create their own employee self-service login. Once they've logged in, they can pick up where you left off, and start on entering their "Personal Info." The fields are fairly self-explanatory. Note that the worker can enter their Social Security Number OR their FEIN (business identification number) into the SSN field.

  • Next, they can continue to add any "Emergency Contacts" (which is optional).

  • Then, the contractor will be asked to select their "Federal Tax Classification" and to add a signature.

  • Finally, they will see the Pay Information you entered for them, and they can choose their preferred payment method (Check or Direct Deposit) and, if they select Direct Deposit, they'll enter the payroll information necessary to be paid.

Once they're finished, you will need to review the employee's verification to put the final stamp on everything. Review, sign, and click "Save and Activate" to officially finish the onboarding. That's all it takes to set up an independent contractor to be paid with FingerCheck!

What if I already created their employee profile, and am realizing this after the Onboarding process?

If the employee has never been paid before in Fingercheck, you can still change the employee's "Tax Type" even after onboarding is done.

  • From the Fingercheck Dashboard, click "Employees" on the left side menu. Find the employee in question, and click their name to enter their Employee record.

  • Go to the "Position & Rates" section.

  • Scroll down to the "Pay Information" area, and click the Pencil icon at the upper right of it to enter editing. In there, look for "Tax Type" and change it.

  • Click the blue "Save" button at the bottom of the "Pay Information" area.

  • Next, head over to the Payroll > Taxes section of the employee's record.

  • If you are changing from W2 to 1099, you will need to click the Trash Can icon for every line on this screen, to remove all of the Tax Codes. Keep in mind there is an Employer Taxes and an Employee Taxes section, so make sure to clear out both!

  • If you are changing from 1099 to W2, you will need to click the Actions icon at the upper-right of the page (just a bit above the pencil icon). This will drop down a menu, in that menu, click "Add Tax Codes".
    On the pop-up window, click "Load By Address". Make sure all of the options are check-marked and hit the green "Add" button at the bottom.
    Finally, go to the line that says "FWT - Federal Withholding". Click the pencil icon to the right of it to edit it. Select which format of W4 you want to use, then set the employee's Marital Status and Exemptions/Dependent Credit fields.
    At some point, it should ask you if you want to apply the change to all tax codes, and unless you know the employee is declaring differently for State than they are for Federal, you'll say Yes to that.
    Make sure to hit the green Save button, and then you're done! 

Again, this is only possible if the employee has never been paid in Fingercheck!
If the employee has been paid, the system will not allow the "Tax Type" field to be changed (it'll just revert back to W2 once the page refreshes).

In this scenario, the way to resolve this problem is to change this employee record to Terminated status, and then create a new employee record, using the directions from the beginning of this article.

You can do this from the employee's portfolio by clicking the green "Active" button underneath their picture. This will generate a pop-up that allows you to change your status.

Lastly, if ever you (or your employer) are in need of technical assistance, you can contact our Support team at 1-800-610-9501, or, use our in-app messaging feature by logging into our secure site and initiating a conversation.

To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Interested in our services? Sign up for a 30-day free trial and get started with FingerCheck today.

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